On May 1, Robert Neupert started skyline flying school, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May.

Cash…………………………………..$6,500

Accounts receivable………………….$7,200

Equipment………………………….$64,000

Lesson revenue……………………....$8,600

Advertising expenses………………….$500

Notes payable………………………$30,000

Rent expenses……………………….$1,200

Repair expense………………………...$400

Fuel expense…………………………$2,500

Insurance expense……………………..$400

Accounts payable……………………..$800

Robert Neupert made no additional investments in May, but he withdrew $1,700 in cash for personal use.

a) Prepare an income statement and owner’s equity statement for the month of May and a balance sheet at May 31.

b) prepare income statement and owner’s equity statement for may assuming that the data above need to be adjusted for the following items: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $3,300 of fuel expenses was incurred but not paid.